Week commencing 1st September 2008
 Television
remains the most successful advertising medium in terms of marketing
payback, according to this year's IPA Effectiveness Awards shortlist,
where traditional TV ads make up 22 of the final 23 entries. The
awards are promoted as the most rigorous effectiveness awards scheme
in the world, and aim to recognise the marketing drives that have
proved to be commercial lucrative. The 23 shortlisted entries
have been chosen from a longlist of 50, and will be judged by a
client panel and awarded on 3 November. Source: MediaWeek
Internet TV has had little impact on British viewing
habits, according to a Deloitte report produced for the Media Guardian
Edinburgh International Television Festival. The report found that
only 4% of the UK population consider it "very important"
to be able to receive TV via the internet, while 47% still regard
it is as not important to them at all. Television industry executives
see the internet as broadcast commercials' greatest threat in 2008
with 69% of executives fearing the movement of advertising revenue
away from television to online. Jolyon Barker, head of Deloitte's
Technology, Media and Telecoms practice, said: "Internet TV
currently appeals most to the young: 25% of 18-24 year olds thought
the ability to watch Internet TV was important compared to just
8% of over 55s. Deloitte expects the audience for internet TV to
increase as this audience grows up." Television executives
predict a growing appetite for internet television, with 47% believing
that by 2010 it will be embraced by the majority of viewers, but
for a minority of viewing. Television executives fear for the future
of the traditional television commercial due to the movement of
advertising revenue away from television to online (69%). However
the report reveals members of the public were mainly content (43%)
with the number of commercial channels on television and only a
quarter (27%) wanted fewer. Source: MediaTel NewsLine
July was another tough month revenue wise for the
terrestrial stations, with only GMTV bucking the downward trend
year on year. The ITV1 breakfast station managed to achieve a 14.6%
increase of revenue, compared to July 2007. The biggest year on
year fall came from ITV1 network, with revenues dipping by 6.2%
to stand at £88.18 million for July 2008. Over at Channel
4, the continued sluggish performance of Big Brother saw another
year on year decrease in revenue. The second biggest commercial
station took in £48.66 million, 4.5% lower than 2007's total.
Meanwhile, Five took in £20.26 million for the month (down
2.1%). Total Satellite saw its revenue total increase by 12.3% year
on year, to stand at £71.92 million. MediaTel NewsLine
Sports broadcaster Setanta has signed a deal with
IPTV service provider Inuk to broadcast its service to students
at more than 40 universities in the UK. The Inuk service allows
students to watch more than 50 TV channels on their PCs through
the UK university data network, Janet, which connects all UK universities.
For a £9.99 monthly subscription, students will be offered
a Freewire Extra package, adding subscription channels such as Setanta
Sports, as well as channels from other broadcasters including MTV
and FX. More than 40,000 people are now receiving digital television
through Inuk's Freewire TV IPTV service. Dwyer McCaughley, Setanta
director of distribution and advertising, said Setanta "wants
new platform partners" particularly in the broadband and mobile
market, after securing distribution deals with all of the major
UK pay TV platforms. Source: MediaWeek
 The Daily Telegraph relaunched in full colour on 2nd September with
a host of changes, including the launch of a new crossword and a
redesign of its business and sports section. Source: Mediaweek
The Times is to raise its cover price by
10p to 80p from Monday, 1 Sept, as its parent company News International
looks to drive revenues. Source: Mediaweek
The Reader's Digest Association has appointed
Media-Link to handle ad sales for its monthly general-interest magazine
and accompanying website in the north of England and Scotland, severing
its relationship with Mediaforce. Source: Mediaweek
IPC's magazine for mature women, Woman's
Weekly, is to undergo an overhaul, including a raft of new editorial
features and a new design, as it looks to woo new readers and reverse
declining circulations. Source: Mediaweek
 The
radio sector is hoping for an ad spend boost in the pre-Christmas
period, as it emerged that advertisers' radio spend fell by 10.2%
year on year in Q2. Following a strong Q1 when radio spend
was at its highest level for three years, and total quarterly revenues
were up 6.7% year on year, radio, like other media, began to feel
the impact of the credit crunch in Q2. RadioCentre data shows that
national advertisers' spend was down 15.9% year on year to £71.5m,
while local advertisers' spend was down 8.4% year on year to £37m.
Sponsorship and promotion spend continued its upward trend, increasing
by 7.3% year on year to £25.8m, which was also just up on
the quarter from £24.6m. Howard Bareham, head of radio at
MindShare, said: "Uncertainty in all media markets has been
with us for a long time and the lows are now lower than they have
ever been. "There is low visibility in revenues and we can't
predict spend very far ahead any more as people are approving things
a lot later now. There is not as much advance booking. Q3 should
be healthier, but the real test for all media is Q4. The question
is where will retailers be placing their advertising spend for Christmas."
Simon Redican, managing director of the Radio Advertising Bureau,
said: "One of radio's greatest strengths is its flexibility
to get advertising on air quickly, but it can also be a bit of a
curse in an economic downturn as it doesn't have the security of
long lead booking times like other media. "So radio probably
felt the effect of the downturn earlier. However, that gives radio
several advantages, as we could put plans in place quicker [than
other media sectors]." Source: Mediaweek.co.uk
Virgin Radio is to rebrand as Absolute radio on 28 September, in
what will be the biggest change made by owner Times of India since
it bought the station for £53m from SMG in June. The rebrand
follows a decision by Times of India not to continue licensing the
Virgin brand, which reverts to its owner Virgin Enterprises. TIML,
which owns the station, is a subsidiary of Times of India group.
The station is run by the three executives who founded radio consultancy
Absolute Radio International: chief executive Donnach O'Driscoll,
chief operating officer Clive Dickens and financial director Adrian
Robinson. TIML would have had to pay a further £8m to continue
licensing the Virgin brand. Branding agency Albion was hired to
devise a replacement brand for Virgin Radio, but according to insiders,
after considering several new names, the Absolute brand became the
favoured option. The decision was made more convenient by the fact
that the company already owns the Absolute trademark and web domain
name. The company's two digital stations - Virgin Radio Xtreme and
Virgin Radio Classic Rock - will rebrand to Absolute Xtreme and
Absolute Classic Rock. In addition, both digital stations will now
carry the main national AM station's breakfast and drive-time shows.
In addition, new Absolute Classic Rock and Absolute Xtreme shows
will be hosted on the main station. Dickens said: "DAB is a
big driver for us going forward and we have to put great live content
on DAB. Our two digital stations are effectively like +1 TV channels
and, by sharing key talent and programmes, it allows us to cross
promote the digital channels on the main station, like TV channels
already do." The company now aims to diversify its business
into areas such as TV, event ownership and services such as an online
music subscription offering. TIML earmarked £15m to develop
and market the new Absolute brand. A major part of this spend will
be used in a 16-week intensive multimedia marketing burst after
the brand officially changes on 28 September. Commercially, Absolute
aims to increase the proportion of revenue it derives from branded
content activities from 30% to more than 50%, as well as increasing
its digital revenue, which accounts for 8% of total revenue. Source:
Mediaweek.co.uk
 UK
companies will spend £2.75bn on search engine marketing this
year, up 24% from 2007, according to new research. It estimates
the £2.75bn spend this year will include £2.42bn going
into paid search, which is a 23% increase on last year. The remaining
£330m comes from spend on search engine optimisation, which
will increase 32% on last year. Chris Lake, editor-in-chief of E-consultancy,
said: "Search spending is continuing to increase at a healthy
pace, although the growth rate will not match the increases seen
over the last few years. "Economic concerns will affect the
overall ad industry, and search isn't entirely immune from a dip
in budgets. Marketers and agencies are savvier than ever, so scope
for growth in ROI is limited. And growth in consumer internet usage
is flattening out. But the sector is certainly more robust than
other media channels which have a less measurable return on investment,
and should continue for years to come." Source: Mediaweek.co.uk
Google could extend its influence over the shape of internet advertising
through its new web browser, according to a leading UK search and
digital marketing expert. The web company is today set to launch
its new brower, Chrome, in an attempt to undermine the rival Microsoft
Explorer browser. Arjo Ghosh, chief executive of iCrossing UK, said
that Chrome's launch would be a hugely significant move, which would
allow Google to extend further into people's daily lives. "By
creating a browser, Google increases its influence on our use of
web software, search and advertising - and ultimately all digital
media consumption. Features such as increased reliability, better
security, and faster application speeds will develop at a breakneck
pace." Source: Mediaweek.co.uk
Virgin Media is to launch a digital version of its bimonthly entertainment
magazine, Electric!, which it claims will be e-mailed to more than
one million of its customers. The e-zine, which will be published
by Redwood, will replicate the style, content and design of the
print product but will also feature a page-turning effect, trailers
and video clips. E-zine readers will also be able to take part in
polls, quizzes and games. The e-zine launches in October and will
run as a complementary product to the print title. Source: Mediaweek.co.uk
 UK
Box Office Chart
1. Step Brothers (15)
2. Mamma Mia! (PG)
3. The Strangers (15)
4. Hell Boy II: The Golden Army (12A)
5. The Dark Knight (12A)
6. Get Smart (12A)
7. Babylon AD (12A)
8. You Don't Mess With The Zohan (12A)
9. Wild Child (12A)
10. Wall-e (U)
Source: Pearl and Dean
Newsletter edited by the Direct Team |
